Labour fires back at Blair over New Statesman piece

The party says it is right to challenge "old ways of doing things" after Blair warns against a shift to the left.

Labour has just issued a response to Tony Blair's sharply critical piece in the centenary issue of the New Statesman (180 pages, out today). A party spokesman said: 

It is always important to listen to Tony Blair because he has important points to make, including in this article where he emphasises our top priority must be growth and jobs.

As he was the first to recognise, politics always has to move on to cope with new challenges and different circumstances.

For example, on immigration, Labour is learning lessons about the mistakes in office and crafting an immigration policy that will make Britain's diversity work for all not just a few.

It is by challenging old ways of doing things, showing we have understood what we did right and wrong during our time in office that One Nation Labour will win back people's trust.

In other words, Ed Miliband's position remains as before: Blair's "third way" does not represent an appropriate response to Britain's current economic and social problems. 

It is notable that rather than rejecting his warning not to "tack left on tax and spending", the party chose to highlight the example of immigration (he urged the party not to "tack right on immigration"). Blair is known to disagree with Miliband's recent decision to apologise for not imposing transitional controls on migration from eastern Europe, which he regarded as essential to fill gaps in the labour market at a time of growth. For Miliband, this is a useful example of how he is moving on not just from New Labour's excessive economic liberalism but also what an increasing number in the party view as its excessive social liberalism. 

Ed Miliband speaks at the CBI's annual conference on November 19, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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